All Forum Posts by: Walter Fabiszewski

And again and again!!!  Thanks 

Investment Info:

Condo buy & hold investment in Pompano Beach.

Purchase price: $60,000

Estate sale. Used my HELOC to purchase and completely renovate. $80,000 total investment. $205,000 ARV.

I’m a Florida licensed Realtor and have a few customers who are investors that are listing their properties for sale and cashing out while the market is hot. I noticed that all of these landlords have tenants that are month to month rather than on a lease. They sign a one year lease, but the landlords don’t seem to be renewing them for years on end. At first I thought that they were just trying to keep it flexible in case they decided to sell, but upon review of the leases, it’s seems like they are going 2-4 years month-to-month. What does everyone think about this? I’ve always required my tenants to sign and renew one year leases (sometimes it’s a rent increase, sometimes without). Now I’m wondering if I should forego the security of a lease and let these tenants go month-to-month. The rental market is very competitive here in Broward County so I’m not concerned with tenants leaving or a long vacancy (most of my rentals are under market value). If I decide to sell, I would only have to give the tenant 15 days notice to vacate.

I have a question for any appraisers out there. I realize that market analyses and appraisals are not an exact science. As a licensed Realtor there are certain guidelines that I follow when preparing a market analysis for a seller. I take as close a comparable property as I can (style, size, #bedrooms/Bathrooms, location, etc) that has been sold and make adjustments based on the condition as it relates to the property I am trying to valuate. I try to find at least 3 comparables, make my adjustments and average them out. (Although in this crazy market, I make additional adjustments upwards for low inventory and demand) Having said that, isn't there a similar guideline that appraisers are supposed to follow? I am in the process of selling a property to one of my tenants. The appraisal came back a little low (in my opinion) because she made over adjustments to the comparables. When I asked questions, she prepared a new report and adjusted the price even lower saying that she "weighted" the lowest valued comparable the most because "it had the least amount of adjustments".....thereby essentially throwing out the other two comparables. Isn't it USPAP guidelines to make your adjustments up or down based on condition and then average them to reach the appraised value? The sales that compare to my condo were $138.500, $145,000 and $158,000. After adjustments, they were $137,300, $138,500 and $143,200. In her first report, she said that the appraised value was $138,500. After "reviewing" her report, she changed the value to $137,300. Sounds like spite to me, but I may just be taking things personally because it's my property. Any insight as to whether this is proper or not would be greatly appreciated. Thank you.

In these uncertain financial times, what are you all doing with your real estate portfolios? I have a friend of mine who is a pseudo-mentor who keeps telling me to liquidate a few of my properties while prices are so high so I have cash for when the next wave of great deals hit. I only have four rental units right now and my ultimate goal is cash flow. However as Robert Kiosaki states in Rich Dad Poor Dad, the key to success is just like the game of Monopoly (four green houses…one red hotel). I’m currently generating a modest monthly cash flow, but wonder if it would be smarter for me to sell one or two of these units and have the cash available to pounce on the next great deal that comes across my path. I currently live and invest in Pompano Beach, Florida. I would like to get out of the condominium market and more into the single-family and multifamily house market. Any recommendations on how to take my portfolio to the next level?

I know everyone is asking the same question: what’s going to happen with the real estate market this year and next? I just got a great deal on a condominium which after purchase and renovations should yield me about $35,000 in equity. My initial thought was to move into this unit, live in it for 2 years and sell without having to pay capital gains tax. I would also plan on renting out the unit I am currently living in for about two years and selling that as a primary residence for two of the past five years and avoid capital gains taxes as well. Now I’m beginning to think that I should sell my current condo and cash out while the market is hot. Then I will be liquid if the market tanks in a year or so and possibly double my portfolio. OR Should I keep everything and just keep collecting rents like I have been adding one unit to my portfolio?

Any thoughts?

@Michael Magno

Awesome! I will check it out.

Do these companies do both credit and background checks?

Can anyone recommend a good tenant screening company? About 15 years ago I was a member of the national tenant network (NTN) and I was able to run background checks and credit checks on tenant applications. I don’t recall if they went out of business or just ended up dropping “small investors“ like myself, but I do remember it was a great resource to have. These days landlords have to be especially careful when choosing a new tenant because it is so difficult to evict if necessary.  Thank you in advance for any recommendations. 

@Shawn Q.

Did you end up finding someone to do your refi?